Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Virginia Mines: This Darling Among Gold Bulls Is More Speculative Than You Think

My goal in this article is to dispel the illusion that Virginia Mines (OTCPK:VGMNF) is a safe way to get exposure to gold. The company has several qualities that would lead one to such a conclusion.

    Virginia Mines has thwarted the downtrend in gold-related equities trading up roughly 3% YTD. By comparison the Market Vectors Gold Miners ETF (NYSEARCA:GDX) has lost nearly half of its value. Virginia Mines has $40 million in cash and no debt. Virginia Mines employs the royalty business model, which minimizes risk insofar as it has fixed costs while mining companies have to deal with fluctuating mining costs and mine development/shutdown costs. Furthermore, the company's primary royalty--that on the Eleonore project ...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details